Orosur Mining (OMI)
Orosur has taken an important first step toward resuming 100% ownership of the Anzá Project (‘Anzá’ or ‘the Project’), targeting completion of a transaction (‘the Transaction’) by the end of April 2024. The proposed consideration, as set out in the letter of intent (‘LOI’) entered with Minera Monte Águila SAS (‘MMA’), includes a net smelter return (‘NSR’) royalty of 1.5% plus cash payments of up to US$15 million payable upon meeting certain agreed (but as yet undisclosed) production thresholds. Recognising the development steps that need to be taken to reach such a stage (including production of a bankable feasibility study (‘BFS’), permitting, construction, etc.) still remain, perhaps, 7 to 10 years away, such deferral considerably derisks the Project for shareholders. Orosur, in exchange, will regain complete control of a now data-rich, potentially world-class opportunity that is clearly much more valuable than what was handed to the JV some years back. In anticipation, the Board is already planning for re-assumption of ownership and operatorship, which appears particularly timely against a background of record gold prices and a greater willingness amongst the international mining community to invest in Colombia once again. With a number of ‘walk up’ drill-ready targets already presented, on-site operations could even re-start before the end of Q2 2024, possibly in tandem with initial discussions with potential development partners. Retaining a forward cash runway sufficient to immediately prioritise such work, the first results could arrive quite rapidly.
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